AXA enters into exclusive negotiations to acquire Spanish Groupe Assurances du Credit Mutuel and strengthen its P&C and Health presence in Spain

20 October 2022 — Daniela GHETU
AXA announced that AXA Spain has entered into exclusive negotiations with Groupe des Assurances du Credit Mutuel ("GACM SA") for the potential acquisition of its subsidiary Groupe Assurances du Credit Mutuel Espana ("GACM Espa?a"), a predominantly P&C and Health insurer in Spain.

Under the terms of the transaction, AXA will acquire GACM Espana for a cash consideration subject to potential contractual adjustment of EUR 310 million, representing a price-to-own funds* multiple** of 1.0x. The estimated price-to-earnings*** multiple is ca. 9x, after the implementation of expected capital and cost synergies.

"This transaction reflects our disciplined approach towards M&A in line with our strategy, enhancing our scale in one of our core European markets, with a focus on technical lines," stated Frederic de Courtois, Group Deputy CEO.

"This acquisition will strengthen our leading position in Spain, and we look forward to growing our business while ensuring a smooth transition for both policyholders and employees," Olga Sanchez, CEO, AXA Spain.

The proposed transaction is subject to customary closing conditions, including completing the information and consultation of the relevant works councils, as well as obtaining required regulatory approvals. The transaction is expected to close in the third quarter of 2023.

* Own Funds is the surplus derived from the Solvency II balance sheet

** Consolidated figures for GACM Espana which notably includes Agrupacio AMCI, Atlantis Vida and GACM Seguros Generales

*** Based on 2021 net income which (i) excludes the earnings generated by the credit insurance business that is out of the scope of this transaction and (ii) is adjusted for expected cost synergies



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